What is PASSIVE RETENTION?

When a company unexpectedly retains risk leading to losses. This usually occurs when they are not properly managing their reserves or self insurance. Refer to retention and risk retention

More On This Topic
  1. What is FED MED/EE Tax?
  2. Is It A Monopoly? Everything You Ever Wanted To Know
  3. Who Needs to Pay the Self Employment Tax?
  4. What Are the Different Types of Insurance?
  5. Best Way To Run A Free Arrest Warrant Check
  6. How To Fire An Employee The Right Way
  7. Nepotism, Cronyism, & Favoritism: Illegal Or Unethical?
  8. What Does Fed OASDI/EE Mean on a Paycheck?
  9. What Is Police Brutality?
  10. Can You Borrow Against a Term Life Insurance Policy?

Related Legal Terms
RISK RETENTION, RISK RETENTION GROUP, RETENTION OF RISK, NET RETENTION, PASSIVE INVESTMENT STRATEGY, RECORD RETENTION SCHEDULE, RETENTION BOND, SELF-INSURED RETENTION (SIR), PASSIVE ACTIVITY LOSS RULES, RETENTION RATE


Link to This Definition
Did you find this definition of PASSIVE RETENTION helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary